On 26 July 2018, assisted by King & Wood Mallesons (KWM), China's largest A-Share listed courier S.F. Holding Co., Ltd. ("SF Holding", stock code: 002352) issued US$500 million five-year senior unsecured bonds at a 4.125% yield abroad in accordance with the Regulation S of the Securities Act of 1933 and successfully closed the deal. The company issued the bonds with its overseas wholly-owned subsidiary as the issuer, while SF Holding provided guarantees. This bond issuance was not only a remarkable achievement obtained by SF Holding in the capital market, but the debut made by China's domestic logistics industry in international bond market. As the bond issue became a representative project, it may pave the way for the fund raising of logistics companies in international bond markets and serve as a model for the offshore bond issuance by domestic logistics companies in the future.
SF Holding is the only logistics company among the Top 10 Chinese innovative companies. It has the largest number of all-cargo aircrafts and is the first Chinese company to obtain the operating license for pilot drone deliveries. This is the first overseas bond offering by SF Holding, marking the debut of China's largest logistics company in the overseas bond market. The issuance attracted intensive attention and investments from a number of international well-known investment institutions, including global insurance companies such as Manulife, China Life, AIA, and Cathay Life Insurance; and famous fund companies such as Fidelity Fund, Pimco and BlackRock. The bond issuance was 7 times oversubscribed and the order amounts over US$3.5 billion.
KWM acted as the PRC counsel to the Joint Lead Managers in this project, and participated in every aspect of this transaction. KWM made innovative breakthroughs in terms of transaction structuring and terms on issuance after multiple rounds of negotiations, which contributed to the success of this transaction. KWM received high recognition from the issuer, the underwriter and all other parties to the transaction. The project was led by partners Wang Lixin and Sun Haotian from Guangzhou office and assisted by partner Song Yanyan.
Mr. Wang Lixin said," SF Holding is an important client of KWM. We are pleased to assist SF Holding with its debut in the overseas bond market. Leveraging on our professional and all-round legal services in various practice areas, we are able to assist our clients to realize their commercial goals in their continuous and strategic efforts to expand on the international capital markets.
